Robert Scheer: Who Crashed The Economy? (marijuana, cost, dollars, carry)
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And who pushed for that? That would have been Republicans .
Clinton caved into Republican pressure, then Bush/Cheney came along, and the wholesale looting began in earnest for 8 years.
Now Pres. Obama and the Democrats are trying to repair the damage left behind by a bunch of gangsters called NEOCONS.
Clinton was a big boy. He did what he did and it had a price. Fannie/Freddie was another contributor. So was Carter's CRA that Clinton accelerated his second term. Obama&co. are doing nothing but digging a deeper hole. $6,000,000,000,000 added debt and counting. Obama is not qualified to 'fix' anything. But he sure as hell knows how to make a bad situation worse.
It was actions from moain street to wall street. From the congress who encuarged it;to bnakers who prvided it to people who wanted it for their own belief in tis wealth building.One only has to realise that mnay bought and sold and made huge profit off hoising;not all where losers.
Agreed; I think it's only rational in essence for one to want to climb the social ladder by having a higher-income which ultimately means purchasing a larger home. Say I'm 25 years old and I'm deciding to purchase my first home, while my income isn't high-enough to support the financing of a home, the banks were still willing to lend it which is irresponsible on both parties side; it's irresponsible for me to purchase more than I can afford, but it's more irresponsible for the bank to loan you the cash knowing that you can't pay it back. Some people (including some of those closest to me) took out these loans for McMansion's and really only hoped that they would be able to afford it; but in reality they knew in the back of their heads the fun of owning those homes were going to be short-lasted before the large bills would come in.
Before I knew of any subprime loan crisis or even the simplicity of loans in the first place (meaning I didn't know people took out loans for homes), I remember back in the part of NC I use to live in was having a huge McMansion boom. You could drive down a road one week and trees were being cleared, the next week a new subdivision sign saying something such as "Iron Creek: Homes Starting At The Low $300's" the next week you see construction vehicles and in about a month about 30 new homes were under construction. Because I was naive I honestly believed that all those homes were being purchased fully rather than by loans so I supported that amount of construction until I eventually began to see that 5 or 10 neighborhoods were built like that on a one mile road yet no one was actually living in the homes. I think that was the beginning of the crisis in my eyes, the actual crisis didn't touch home until a year later.
The last time I visited home/NC it seemed as if the boom is trying to reignite itself though, lets just hope it's more responsible this time. I have noticed a lot more town homes and apartments under construction as opposed to homes though so I'm guessing homes really aren't too hot at the moment.
Truthdig is a good news source as, unlike most blogs, it follows all journalistic guidelines about truth, accuracy, and full disclosure plus they don't post spurious nonsense but instead concentrate on real verifiable and reproducible facts. Mainly they take the big headlines and then look deeper to find out why things really happen and what is going on behind the scenes to drive events.
The narrative that it was policies that allowed poor people to own their own homes; that it was the big bad government forcing banks to do something they didn't want to do, Barney Frank was a boogie man, etc., just misses the real cause.
Every piece of the government-did-it thesis has been refuted; see Mike Konczal for a summary.
Quote:
For some data, start here: ”More than 84 percent of the subprime mortgages in 2006 were issued by private lending institutions….Private firms made nearly 83 percent of the subprime loans to low- and moderate-income borrowers that year.”
Quote:
As economist Robert Gordon has written, the lenders that made the bulk of subprime loans weren’t even covered by government laws to encourage homeownership. In fact, 94 percent of high-cost loans were totally unconnected from government homeownership laws. source
Financial institutions, both regulated and deregulated, made money taking mortgages of dubious value, rating them AAA and selling them to investors. Nobody had to "force" them. These firms went out of their way asking for more mortgages. They were all getting rich and pocketing large commissions until the economy collapsed -- leaving them personally with millions and the public holding the bag.
What's really funny is that the same people making these claims now, back then were denying that there was even a housing bubble. (source)
Last edited by MTAtech; 04-08-2013 at 06:45 AM..
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